Lots of good advise here, you did not say if this was still your primary residence if it is you have a 250,000 capital gains exclusion if your single or 500,000 if your married. If you convert this to rental property you could loose that. Before you decide anything get to your tax attorney, enrolled agent or CPA and get this clarified. I usually find that a person is going to spend a lot more than they think for managing a piece of rental property especially if they are doing it long distance. Good luck and feel free to contact me if you have any questions.